The aim of this research to determine the influence of earning quality as moderator to earnings and operating cash flow predictive ability in predicting future operating cash flows. Sampling data 19 companies were consisted at LQ45 index during period August 2009 to February 2014 by using purposive sampling method. To test the hypothesis, this research use regression analysis with panel model. The conclusion of hypothesis done with the value of correlation coefficient and regression, consider the significance of test result are F - test and t-test level for significance 5 %, the test uses classical assumption test such as normality test, multicollinearity test, autocorrelation test, and heteroskedasticity test. The results of the research show that earnings and operating cash flow predictors simultaneously to predict future operating cash flows better than use predictor earning or operating cash flows. The results show too that earning quality strengths predictive ability of earning and cash flows simultaneously to predict future operating cash flows.
Volume 11 | 03-Special Issue
Pages: 527-530